The Skype for iPhone app has been updated with a system that reduces the shakiness of outgoing video calls when using the rear camera.

The anti-shake technology will benefit people who use Skype to show friends or family where they are at the time of the call, or what they are doing at that moment.

Another new feature is support for Bluetooth on iPad and iPhone, enabling users to make hands-free conference calls while on the move, or when they simply don't want to hold their device.

Alongside the new features, the app update also introduces the advertising platform that was recently launched by Skype on Mac computers. Paying Skype customers or Skype Credit users will not see the display ads on their iPhones or iPads.

The Skype for iPhone update supports the iPhone 3G, iPhone 3GS and iPhone 4, along with second and third generation iPod Touch, and both iPad and iPad 2. The update also includes an "important security fix," according to Skype.